Implementing the Dodd-Frank Act: The Federal Reserve Board's Role

The Federal Reserve Board is responsible for issuing a number of rules under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act" or "DFA"), sometimes in conjunction with other government agencies. Listed below are initiatives completed by the Board, along with some of the proposals the Board has planned through 2013 and proposed rules that are being finalized. Timeframes for upcoming initiatives are estimates and may be adjusted.

Initiatives Completed (2012)

Current
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June 2015

Standards for Assessing Diversity Policies and Practices
On June 9, 2015, the Board, along with the CFPB, FDIC, NCUA, OCC and SEC issued a final interagency policy statement establishing joint standards for assessing the diversity policies and practices of the entities they regulate.

April 2015

Real Estate Appraisal Management Company Registration
On April 30, 2015, the Board, along with the CFPB, FDIC, FHFA, NCUA, and OCC, issued a final rule to establish minimum requirements for state registration and supervision of real estate appraisal management companies. (DFA Section 1473)

November 2014

Financial Sector Concentration Limit
On November 5, 2014, the Board issued a final rule that generally prohibits a financial company from combining with another company if the ratio of the resulting company's liabilities exceeds 10 percent of the aggregate consolidated liabilities of all financial companies. (DFA Section 622)

October 2014

Financial Market Utilities (FMUs): Risk-Management Standards
On October 28, 2014, the Board issued a final rule that amends the Regulation HH risk-management standards for FMUs that have been designated as systemically important and to make related revisions to part I of the Federal Reserve Policy on Payment System Risk, which is applicable to financial market infrastructures more generally. Both sets of revisions are based on and generally consistent with the April 2012 Principles for Financial Market Infrastructures developed jointly by international standard-setting bodies. (DFA Section 805)

Credit Risk Retention
On October 22, 2014, the Board, along with the FDIC, FHFA, HUD, OCC, and SEC, issued a final rule requiring sponsors of securitization transactions to retain risk in those transactions. (DFA Section 941)

September 2014

Minimum Liquidity Requirement
On September 3, 2014, the Board, along with the FDIC and OCC, issued a final rule that creates a standardized minimum liquidity requirement for large and internationally active banking organizations. (DFA Section 165(b)(1))

Swaps Margin Requirements
On September 3, 2014, the Board, along with the FCA, FDIC, FHFA, and OCC, requested comment on a proposed rule to establish margin requirements for swap dealers, major swap participants, security-based swap dealers, and major security-based swap participants under each prudential regulator's jurisdiction. This proposal builds on one originally released by the agencies on April 12, 2011, and includes modifications in light of comments received. (DFA Section 731)

August 2014

Repeal of Regulation AA
On August 22, 2014, the Board issued a proposed rule to repeal its Regulation AA (Unfair or Deceptive Acts or Practices), as required by the Dodd-Frank Act. (DFA Section 1092(2))

June 2014

Capital Planning and Stress Testing Modifications
On June 12, 2014, the Board issued a proposed rule to modify the start date of capital plan and stress test cycles for bank holding companies with $50 billion or more in total consolidated assets from October 1 of a calendar year to January 1 of the following year. (DFA Section 165(i))

May 2014

Repeal of Regulations DD and P; Amendment to Fair Credit Reporting Regulation
On May 22, 2014, the Board issued final rules repealing its Regulation DD (Truth in Savings) and Regulation P (Privacy of Consumer Financial Information), as the Dodd-Frank Act transferred rulemaking authority for these areas to the Consumer Financial Protection Bureau (CFPB) and the CFPB has already issued interim final rules substantially identical to them. The Board also issued a final rule amending provisions of its Regulation V (Fair Credit Reporting) that require financial institutions and creditors to implement identity theft prevention programs. (DFA Title X)

Financial Sector Concentration Limit
On May 8, 2014, the Board issued a proposed rule to prohibit a financial company from combining with another company if the ratio of the resulting financial company’s liabilities exceeds 10 percent of the aggregate consolidated liabilities of all financial companies. (DFA Section 622)

March 2014

Real Estate Appraisal Management Company Registration
On March 24, 2014, the Board, along with the CFPB, FDIC, FHFA, NCUA, and OCC, issued a proposed rule to implement minimum requirements for state registration and supervision of real estate appraisal management companies. (DFA Section 1473)

Stress Test Guidance for Medium-Sized Firms
On March 5, 2014, the Board, along with the FDIC and OCC, issued final guidance describing supervisory expectations for stress tests conducted by financial companies with total consolidated assets between $10 billion and $50 billion. (DFA Section 165(i))

Repeal of Regulations DD and P; Amendment to Fair Credit Reporting Regulation
On February 12, 2014, the Board requested comment on proposals to repeal its Regulation DD (Truth in Savings) and Regulation P (Privacy of Consumer Financial Information), as the Dodd-Frank Act transferred rulemaking authority for these areas to the Bureau of Consumer Financial Protection (CFPB), and the CFPB has already issued interim final rules substantially identical to them. The Board also proposed to make amendments to the Identity Theft Red Flags rule in Regulation V (Fair Credit Reporting). (DFA Title X)

Financial Market Utilities (FMUs): Risk-Management Standards
On January 10, 2014, the Board proposed to amend risk-management standards in Regulation HH for FMUs designated as systemically important, originally issued on July 30, 2012, and to make related revisions to part I of the Federal Reserve Policy on Payment System Risk (PSR Policy), which is applicable to financial market infrastructures more generally. Both sets of revisions are based on and generally consistent with the April 2012 Principles for Financial Market Infrastructures developed jointly by international standard-setting bodies. (DFA Section 805(a)(1))

December 2013

Swaps Push-Out Provision Applicability to Uninsured U.S. Branches and Agencies of FBOs
On December 24, 2013, the Board issued a final rule clarifying the treatment of uninsured U.S. branches and agencies of foreign banks, commonly known as the swaps push out provision, that adopts without change an interim final rule issued on June 5, 2013. (DFA Section 716)

Emergency Lending Authority
On December 23, 2013, the Board issued proposed amendments to Regulation A (Extensions of Credit by Federal Reserve Banks) to implement changes to section 13(3) of the Federal Reserve Act, as required by the Dodd-Frank Act. These amendments will ensure that any Federal Reserve emergency lending program or facility is for the purpose of providing liquidity to the financial system and not to aid an individual failing financial company. (DFA Section 1101)

Appraisal Exemptions for Higher-Priced Mortgage Loans
On December 12, 2013, the Board, along with the CFPB, FDIC, FHFA, NCUA, and OCC, issued a final rule that creates exemptions from certain appraisal requirements for a subset of higher-priced mortgage loans. Such exemptions are intended to save borrowers time and money while still ensuring the loans are financially sound. The original final rule was issued on January 18, 2013. (DFA Section 1471)

Volcker ruleOn December 10, 2013, the Board, along with the CFTC, FDIC, OCC, and SEC, issued final rules to prohibit insured depository institutions and companies affiliated with insured depository institutions from engaging in short-term proprietary trading of certain securities, derivatives, commodity futures and options on these instruments, for their own account (known as the "Volcker rule"). The final rules also impose limits on banking entities’ investments in, and other relationships with, hedge funds or private equity funds. (DFA Section 619)

Bank Secrecy Act Amended DefinitionsOn December 3, 2013, the Board, along with the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury, issued a final rule to amend the definitions of "funds transfer" and "transmittal of funds" under regulations implementing the Bank Secrecy Act, resulting from amendments to the Electronic Fund Transfer Act made by the Dodd-Frank Act. (DFA Section 1073)

October 2013

Liquidity Requirements for Large Financial Institutions
On October 24, 2013, the Board issued a proposed rule, developed with the FDIC and OCC, to strengthen the liquidity positions of large financial institutions. The proposed rule would create a standardized minimum liquidity requirement for large and internationally active banking organizations and systemically important, non-bank financial companies designated by the Financial Stability Oversight Council. It would also apply a less stringent, modified requirement to BHCs and SLHCs that are not internationally active but have more than $50 billion in total assets. (DFA Section 165)

Diversity Standards for Assessing Supervised Institutions
On October 23, 2013, the Board, along with the CFPB, FDIC, NCUA, OCC, and SEC, requested comment on a proposed interagency policy statement to establish joint standards for assessing the diversity policies and practices of the institutions they regulate. (DFA Section 342)

Guidance on Qualified Mortgage Fair Lending Risks
On October 22, 2013, the Board, along with the CFPB, FDIC, NCUA, and OCC, issued guidance to address industry questions about fair lending risks associated with offering only Qualified Mortgages. The agencies do not anticipate that a creditor’s decision to offer only Qualified Mortgages would, absent other factors, elevate a supervised institution's fair lending risk. (DFA Section 1411)

September 2013

Stress Testing Requirements Basel III Application and Transition Period
On September 24, 2013, the Board issued two interim final rules to clarify application of Basel III regulatory capital reforms into capital and business projections for company-conducted stress tests for banking organizations with $50 billion or more in total consolidated assets and to provide a one-year transition period when conducting initial company-run stress tests for most banking organizations with total consolidated assets between $10 billion and $50 billion. (DFA Section 165(i))

August 2013

Credit Risk Retention
On August 28, 2013, the Board, along with the FDIC, FHFA, HUD, OCC, and SEC, issued a revised proposed rule to implement credit risk retention requirements that would require sponsors of securitization transactions to retain risk in those transactions. The new proposal revised a proposed rule issued on March 29, 2011. (DFA Section 941)

Supervisory Assessment Fees
On August 16, 2013, the Board issued a final rule establishing annual assessment fees for its supervision and regulation of large financial companies. The rule is applicable to companies with $50 billion or more in total consolidated assets and nonbank financial companies designated by the Financial Stability Oversight Council for supervision by the Federal Reserve. (DFA Section 318(c))

July 2013

Integrated Regulatory Capital Framework
On July 2, 2013, the Board issued a final rule to establish an integrated regulatory capital framework implementing in the United States the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision and changes required by the Dodd-Frank Act that include implementing minimum risk-based and leverage capital requirements for certain SLHCs; "generally applicable" minimum risk-based and leverage capital requirements for all banking organizations; removal of references to, and reliance on, credit ratings from capital rules; and the counter-cyclical buffer for advanced approaches banking organizations. (DFA Sections 171, 616, 939A)

June 2013

Swaps Push-Out Provision Applicability to Uninsured U.S. Branches and Agencies of FBOs
On June 5, 2013, the Board issued an interim final rule clarifying the treatment of uninsured U.S. branches and agencies of foreign banks under the so-called swaps push-out provision. (DFA Section 716)

April 2013

Supervisory Assessment Fees
On April 15, 2013, the Board requested comment on a proposed rule to implement a requirement to impose fees on bank holding companies and savings and loan holding companies with assets of $50 billion or more, and nonbank financial companies supervised by the Board, that are sufficient to cover the cost of supervising and regulating these organizations. (DFA Section 318(c))

Retail Foreign Exchange Futures and Options
On April 4, 2013, the Board issued a final rule to establish standards for banking organizations regulated by the Federal Reserve that engage in certain types of foreign exchange transactions with retail customers. (DFA Section 742)

"Financial Company" Definition for SIFI Designation
On April 3, 2013, the Board issued a final rule that establishes the requirements for determining when a company is "predominantly engaged in financial activities." The requirements will be used by the Financial Stability Oversight Council (FSOC) when it considers the potential designation of a nonbank financial company for consolidated supervision by the Federal Reserve. (DFA Section 102)

February 2013

Federal Reserve Accounts and Services for Financial Market Utilities
On February 26, 2013, the Board issued a proposed rule to amend Regulation HH to give Reserve Banks the authority to provide accounts and services to financial market utilities (FMUs) designated as systemically important by the Financial Stability Oversight Council (FSOC). (DFA Section 806)

January 2013

Appraisals for Higher-Priced Mortgage Loans
On January 18, 2013, the Board, along with the CFPB, FDIC, FHFA, NCUA, and OCC, issued a final rule to implement appraisal requirements for higher-risk mortgages (DFA Section 1471)

December 2012

FBO Enhanced Prudential Standards
On December 14, 2012, the Board issued a proposed rule to strengthen the oversight of U.S. operations of foreign banks. Enhanced prudential standards for U.S. large BHCs and nonbank financial companies were previously proposed on December 20, 2011. (DFA Section 165 & 166)

November 2012

Bank Secrecy Act Definitions
On November 29, 2012, the Board and the Financial Crimes Enforcement Network (FinCEN) jointly issued a proposed rule to amend definitions of "funds transfer" and "transmittal of funds" under regulations implementing the Bank Secrecy Act that result from DFA amendments to the Electronic Fund Transfer Act. (DFA Section 1073)

October 2012

Stress Testing Requirements
On October 9, 2012, the Board issued two final rules on stress testing requirements for certain bank holding companies, state member banks, and savings and loan holding companies for which the Federal Reserve is the primary federal financial regulator. Nonbank financial companies designated by the Financial Stability Oversight Council will also be subject to certain stress testing requirements contained in the rules. These final rules revise portions of proposed stress testing requirements contained in the Board's proposed rule to implement enhanced prudential standards issued for comment on December 20, 2011. The Federal Reserve coordinated closely with the FDIC and OCC to ensure consistency and comparability. (DFA Section 165(i)(1) and (i)(2))

September 2012

Discount Window Lending and Open Market Transaction Publication
On September 28, 2012, the Board began the quarterly publication of transaction-level information related to discount window lending to depository institutions and open market transactions. The data in the initial release covers transactions between July 22, 2010, and September 30, 2010. This information will be made available on a quarterly basis and with an approximately two-year lag. The transaction-level detail supplements extensive aggregate information the Federal Reserve has previously provided in weekly, monthly, and quarterly reports. (DFA Section 1103(b))

July 2012

Financial Market Utilities (FMUs): Risk-Management Standards, Advance Notice Requirements
On July 30, 2012, the Board announced approval of a final rule to implement two provisions of the DFA related to supervision of FMUs designated as systematically important by the Financial Stability Oversight Council. Specifically, the rule establishes risk-management standards for designated FMUs supervised by the Federal Reserve (DFA Section 805 (a)(1)) and requirements for advance notice of a proposed material change to its rules, procedures, or operations (DFA Section 806 (e)(1)(B)).

Debit Interchange
On July 27, 2012, the Board approved a final rule amending the provisions in Regulation II (Debit Card Interchange Fees and Routing) that permit a debit card issuer subject to the interchange fee standards to receive a fraud-prevention adjustment. The final rule revises provisions that are currently in effect as part of the interim final rule, which the Board announced on December 16, 2010.

June 2012

Market Risk Capital Rule
On June 7, 2012, the Board approved a final rule, developed jointly with other Federal bank regulatory agencies, to implement changes to the market risk capital rule, which requires banking organizations with significant trading activities to adjust their capital requirements to better account for the market risks of these activities. The final rule includes alternative standards of creditworthiness for determining specific risk capital requirements for certain debt and securitization positions, consistent with the requirements of DFA Section 939A.

Integrated Regulatory Capital Framework
On June 7, 2012, the Board requested comment on three proposed rules that taken together would establish an integrated regulatory capital framework implementing in the United States the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision and changes required by the Dodd-Frank Act. (DFA Section 171)

May 2012

Securities Holding Company Registration Procedures
On May 30, 2012, the Board announced approval of a final rule outlining the procedures for securities holding companies (SHCs) to elect to be supervised by the Federal Reserve. An SHC is a nonbank company that owns at least one registered broker or dealer. (DFA Section 618)

April 2012

Volcker Rule Conformance Period ClarifiedOn April 19, 2012, the Board, along with the CFTC, FDIC, SEC, and OCC, clarified that an entity covered by the Volcker Rule has until July 21, 2014, two years following the statutory effective date of Section 619 of the Dodd-Frank Act, to fully conform its activities and investments. On February 9, 2011, the Board announced the final rule to implement the conformance period. (DFA Section 619(c)(6))

"Financial Activities" Definition For SIFI Designation
On April 2, 2012, the Board requested comment on a proposed amendment to the Board's proposed rule issued February 11, 2011, to establish requirements for determining whether a company is "predominantly engaged in financial activities." The proposed amendment is intended to clarify the activities that are financial for purposes of DFA Title I. (DFA Section 102(b))

March 2012

Office of Minority and Women Inclusion (OMWI) Congressional Reports
On March 30, 2012, the Board and Federal Reserve Banks issued reports to Congress on their implementation of OMWI offices. (DFA Section 342)